NOPA to President: We appreciate the thought, now please reconsider.

The National Office Products Alliance (NOPA) has put out a statement that has both praise and some suggestions for President Obama’s plan to trim some of the federal budget by purchasing office supplies “in bulk”. During a discussion of the ways in which he could save money, the topic of office supplies came up, and President Obama mentioned a discussion he had with the Department of Homeland Security during which he was advised that bulk purchasing could save over 50 million dollars. While this sounds good on its face, NOPA has some caveats. Their press release is reprinted here.

The National Office Products Alliance (NOPA) is taking exception to President Barack Obama’s remarks this week regarding the ability of the U.S. Government to save money by purchasing office supplies “in bulk.” Specifically, the President advised reporters that “Secretary Janet Napolitano at the Department of Homeland Security estimates that they can save up to $52 million over five years just by purchasing office supplies in bulk.” The remark was made during a discussion of the President’s recent request to all Cabinet members to save at least $100 million through efficiency actions.

In a letter to the President, the Association applauded his determination to ensure that government purchasing is as efficient as possible, but pointed out that “bulk” purchasing does not produce that desired result. Decisions to “strategically” buy office products from a single, large national source have proven unsuccessful and have many unintended consequences. These include displacing competitive small businesses, precisely what our Nation does not need in this challenging economic environment.

In addition, sole-sourcing arrangements are subject to abuse, as an awarded vendor’s pricing on thousands of distinct products is rarely audited and there are no competitors left to challenge the awarded company for the government’s business every day.

NOPA proposes that a better model for government purchasing of office supplies is to use the GSA Multiple Award Schedule that preserves ongoing competition among many vendors and creates ongoing opportunities for successful, innovative small business participation.

“We strongly urge you to move your Administration’s purchasing strategy in that direction,” said Bob Chilton, chairman of NOPA, in his joint letter to President Obama with NOPA president Chris Bates. The letter outlined specific practical reasons why “bulk purchasing” is inefficient, wasteful and fails to deliver “best value” to customers who buy industry products. “We also ask that you encourage your staff and all of your Cabinet Secretaries to give full consideration to our proposed alternative competitive purchasing strategy for office products. We believe it is the superior approach and will save government customers and taxpayers more while producing greater value,” Chilton added.

I can only say that I agree whole-heartedly with NOPA’s assessment of the situation. While it’s easy enough to throw out the term “bulk buying”, it needs to be taken into consideration whether or not you are getting your supplies from multiple, reputable vendors, which eliminates the potential for misconduct. No word yet on the reaction to the NOPA release (if any), but I have seen the story passed around on several major news sites.

A lot of people  think it’s a gag that Obama is trying to cut costs by bulk-buying office supplies (One pundit quips, “What does the government do? Send a guy down to the store every time it needs a ream of copier paper?”), but those of us in the industry realize the seriousness of the issue and will be following it with great interest. Stay tuned for more updates!

Big Box Watch: Detroit latest to file Office Depot complaint

I’m actually amazed it’s been this long since we had some new Office Depot news, but of course, when it came it was not surprising. The Detroit Public School system is the latest to accuse Office Depot of overcharging on their contracts, as reported by the Detroit Free Press:

The Detroit Public Schools chief investigator is researching allegations that its office supply contractor, Office Depot, overcharged the district over the past three years.

The company is already under investigation in several other states and, according to the whistleblower, agreed to repay the city of Berkeley, Calif., approximately $289,000 after that city’s officials uncovered overcharges spanning the past 3 years.

DPS Inspector General John Bell contacted the whistle-blower involved in the Florida investigation immediately upon learning of this alleged scheme Monday, said district spokesman Steve Wasko.

“We are looking into its impact on DPS,” Wasko said Monday evening.

Office Depot released a statement today by email denying allegations that the company overcharged the Detroit Public Schools.

“Office Depot enjoys a good relationship with Detroit Public Schools,” spokesman Jason Shockley said. “We are not aware of any complaints from the Detroit Public Schools regarding overcharging and we have no reason to believe we have been overcharging them.”

This is one of the times where this news has really hit home to me. Everyone likes to think of the big bad government sitting around all rich and corrupt, so who cares if we overcharged them a few pennies?

Well, I lived near Detroit for a long time, and had friends go through the DPS, some as students and some as teachers. These schools need every penny they can possibly get, and to try to overcharge them for the basic necessities of pencils and paper is just despicable.

Hopefully it won’t be much longer before I get to report that Office Depot has finally collapses under all of this wrongdoing, and we can just put the whole mess behind us.

Good deeds for great causes

TheState.com has an article up right now regarding donating to charity, and it has an angle I’ve never thought of before:

“Charities need office supplies year-round to operate,” said Joyce Wagster, coordinator for the event and founder of The Adam Turner Foundation, which works with area hospitals and shelters to raise funds for children who have been abused or stricken by cancer.

“It’s great to write a check — I mean everybody can use it — but if it’s something we can find lying around someone’s attic, that works, too.”

Wagster says administrative expenses for her own organization can be “quite costly.”

“Just basic supplies like antibacterial soap or copy paper that most (companies) take for granted can be expensive to have to buy year-round.”

I’ve always been one of those people who likes to donate my old stuff to a good cause, but I never thought about the kinds of things you can donate to a charity itself. Most non-for-profit charities exist to provide your goods to people in need, but what about the needs of the people running the charity? Check the article for a list, and then consider picking up some supplies to help out one of your local charities. You’ll feel great, they’ll appreciate it, and hey! It’s tax-deductible. In case, you know, you haven’t filed your taxes yet. Like me.

Article: 9 Ways to Geek Your Office

Just found this over at eWeek.com – it’s a slideshow of some pretty impressive office gear. While it’s a little more unique than the stuff we sell, things like this still hold a special place in my heart as a gadget lover. I think the perfect office is one that blends over-the-top tech like this with a full pantry of the basics; pens, paper, toner, that kind of thing. And while the best bet for, say, picking a reliable office chair is to find something comfortable and affordable, I’ll always drool over some of this stuff, like this Motoart B-52 Ejection Chair. Check out the E-Week article for more geeky pipe dreams.

Article: The Evolution of the Office Space

Wired.com posted a pretty amazing roundup of office layouts throughout the ages, and it really shows an amazing progression in how we’ve come to view our communal workspaces.

While the fundamentals of desk, chair, etc. are all there, it’s pretty cool to see how workflow, communication and technological integration have shaped the way we lay out our floor designs.

Most of my office career has been spent in one variation or another of #4, the “Cube Farm”, which, according to Wired:

[is] the cubicle concept taken to the extreme. As the ranks of middle managers swelled, a new class of employee was created: too important for a mere desk but too junior for a window seat. Facilities managers accommodated them in the cheapest way possible, with modular walls. The sea of cubicles was born.

From a row of school-like desks to the current fractal hubs of modern-day networking layouts, this article has a tidbit for all of them. Definitely worth a look.

Article: Professional Organizers help save time and money

Courant.com has an article up where individuals share testimonials they’ve learned from professional organizers. As that fits in with what we like to do around here, I thought I’d share it. The highlight that grabbed my attention?

• Organizing office supplies: Has prevented unnecessary purchases for my home and business.

• Organizing my garage business supplies: Has also allowed my employees to find supplies and not accidentally double order, wasting cash flow.

• Time is money: When I can find files, etc., I am more productive all day.

As we’ve shown before, just knowing where your stuff is can help save you needless expense and make your day a little easier all around. The right filing cabinet, a handful of binding solutions for all your loose papers, and so on can really spruce up an office, home or otherwise, and keep it running like clockwork. That article said it best: time is money, and the less time you waste finding the stuff you need to run your office and the more time you spend running it, the better off you’ll be.

Big Box Watch: Companies want tax refunds to cut losses

According to CNN.com, many large companies, inluding Office Depot and International Paper Co., are lobbying to revive a campaign to get refunds for taxes paid as many as five years ago, as losses mount.

At issue is a proposal to allow companies to use 2008 and 2009 net operating losses (NOLs) to get refunds for taxes paid as far back as 2003. Current law allows only a two-year carryback of those losses.

“The NOL provision is the strongest tool you can provide to help companies in a broad cross-section of industries weather the current economic conditions,” the CEOs wrote to lawmakers.

“It will allow businesses to meet payroll, retain their work force, help avoid additional layoffs and stabilize the business environment,” they wrote.

So basically, a lot of large big-box companies are in such deep trouble that they’re looking to extend the rule (which allows you to seek reimbursement for taxes paid up to two years ago) to go back FIVE years to try to cover their ever-expanding losses. I’m all for economic stimulus, but I’d like to think that there must be a better way to “meet payroll, retain workforce, avoid layoffs” and so on. In Office Depot’s case it’s especially hypocritical; they ask for government assistance with one hand and engage in all kinds of shady dealings with the other. Try offering value to your customer and provide a fair and honest work force, and I doubt you’d have all these money troubles. Seems to work for us.

NOPA Urges Governments to End Sole-Source Contracting

In light of recent allegations of big-box retailers abusing their stranglehold on government contracts, the National Office Products Alliance (NOPA) has put out a statement calling for an end to single-source contracts with state and local governments. The statement was triggered by an announcement to local government customers that, effective approximately March 30, nationwide pricing of office products under the “U.S. Communities” contract would be changed across-the-board without input from local government customers. According to the NOPA press release:

NOPA contends that more competition is essential at the local government and school district levels to ensure consistent delivery of “best value” and help government customers avoid the need for costly, time-consuming and sometimes embarrassing audits of their office product purchases. “Regrettably, such competition has been lacking and the growing number of public audit findings indicating non-compliance with contract pricing and product purchasing requirements should be a major concern,” said Chris Bates, president of NOPA. “In several cases, state and local governments have been refunded public funds that their audits determined were due.”

This sort of day-to-day competition would not only close the door on single companies that seek to abuse their contracts, but open a new one for smaller, independent retailers to get their products in the hands of those who need them. More competition leads to better value for the buyer, and more opportunities for the seller. It’s a win-win situation, and one that’s been a long time coming.

Big Box Watch: Ex-Office Depot Worker Speaks Out

A CBS2 investigative report has an interview with former Office Depot manager Ed Kurkurian, who was fired for following orders handed down from his superiors to lie to customers about laptop availability. Despite initially not talking to the investigators who came to his store looking for evidence of misconduct, Kurkurian was later fired, with Office Depot saying he was to blame for instructing salespeople not to sell computers without warranties.

Kurkurian gave the interview to clear his name and set the record straight about Office Depot’s policies:

…Kurkurian reveals what he says was the company’s secret policy. Designed to get consumers to buy expensive extras on computers. One he says was handed down from his district manager to some Office Depot stores in Southern California.

“What specifically did he tell you to do?”

“Go ask questions and ask if they want a warranty. If customer doesn’t want a warranty, go in back and pretend like you’re looking for computer and come back and say no. We’re out of stock.”

“That’s lying to the customer?”

“Yes.”

Despite the truth of these accusations already being revealed by an undercover report, it’s pretty damning to hear it straight from an ex-employee’s mouth. Though there will surely be those who accuse him of using this as an opportunity to “get back” at his former employer, the fact that independent investigations have found evidence of similar wrongdoing at stores accross the country lead me to believe that Kurkurian is telling the truth. Shame on you, Office Depot. Maybe there’s a reason your stores are “like ghost towns”. No one likes a crook.

Schedule C – What expenses can your business file?

Tax time is upon us once again, and small business owners, especially new ones, are likely to be blindsided by the sheer amount of tax information out there for a business owner. According to an article posted on Mary953’s “Caps” blog (a division of popular money site The Motley Fool), the 2006 tax code was the same word length as 10 King James Bibles. No one should be expected to remember it all.

In the spirit of compiling useful knowledge, I thought I’d link you to Mary’s post as it is indeed incredibly helpful in finding out what expenses you can claim. And since we have a particular focus around here, here’s an excerpt that stands out for me:

Office Expenses (18) – Office Supplies – Ink, paper, toner, pens, staplers and staples, paper clips, folders, and, guess what?  If you have an office with a public bathroom, then use that company credit card to buy hand soap, towels, toilet paper and the rest because it is deductible too.  Coffee service is here if for clients.  You can put snow removal, lawn care, cleaning service under this also.  Remember that the name of the game is to spread the expenses out so that you have something under as many spots as possible.

The links above are my own addition, of course, but it’s still cool to see that you can list all this useful stuff on your taxes. Check the article for a full list of how to get the most back (or at least avoid giving too much) this tax season!